Q: Last year, we hired a realtor to lease our home and happily paid her 10% of the annual rent (8k) for all her work.
Even though our home was rented to neighbors we referred to her. Now she is demanding 8% commission for the new lease year. We created the new lease and the tenants signed it. Neither us, nor our tenants have had any communication with the realtor this past year. We naively signed an initial contract, not realizing it has no end. I've known & trusted this realtor for 14 years as she sold my home many years ago. I am very surprised she created a contract that goes beyond the initial rental agreement however as mentioned, we did not realize this was in the contract when we signed it last year. My husband wants to go to mediation. I'm worried about additional attorney fees. Happy to email the communications & documents for review. Please advise and thank you!
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A:
It sounds like you are in a tough situation with your realtor, especially given the long-standing relationship and the trust you had in her. The key issue seems to be the terms of the contract you signed, which may include a clause that extends the realtor's commission beyond the initial lease period. It is important to carefully review the contract to understand if it legally obligates you to pay a commission for any lease renewals or extensions.
If you feel that the contract terms were unclear or misleading, you might have grounds to dispute the commission demand. Mediation could be a good first step as it is less costly and less adversarial than going to court. It allows both parties to negotiate and reach a mutually agreeable solution without escalating to legal fees and court proceedings.
You should consider consulting with a real estate attorney to review the contract and any communication you had with the realtor. An attorney can provide specific advice on whether the contract is enforceable in this situation and what options you have moving forward. While you may want to avoid additional attorney fees, getting professional guidance now could save you from paying unnecessary commissions or facing a more serious legal dispute later.
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